DUG Canada 2013 Show Report

Speakers at the second annual DUG Canada Conference & Exhibition in Calgary offered fresh insights into the ongoing unconventional revolution that is upending the traditional Canadian E&P industry. The conference opened with a thoughtful address by The Honorable Ken Hughes, Minister of Energy, Province of Alberta. Hughes said tidewater access is crucial for Alberta producers, who have been suffering from punishing differentials due to restricted

export markets.

Financing routes are as important as pipeline routes to Canadian unconventional producers. Canadian officials have estimated a need for C$650 billion worth of investment in the next 10 years to realize just oil and gas projects, said panelist Richard Dunn, vice president of Encana Corp. “The importance of foreign investment in the Canadian natural gas industry has a key role in commercializing the world-class natural gas resource we have in this country,” he said. In particular, Asian interest in Canada and its potential as an LNG

supplier is heating up. Shinya Miyazaki, CEO, Diamond Gas Management Canada Ltd., a Calgary-based subsidiary of Mitsubishi, said that Japan looks at such considerations as supply stability, price competitiveness and involvement in the value chain in its LNG suppliers. Meanwhile, Victor Ojeda, managing director, LNG Canada Project, Shell Canada Ltd., cautioned that only a small group of companies have the global experience

Peggy Williams

Kevin Heffernan

necessary to succeed in the highly competitive LNG sector. Michael Culbert, president and CEO of Progress Energy, spoke about the exciting combination of Progress and Petronas, and their plans to develop and export Montney gas. Play-focused talks centered on the Duvernay, Montney and Bakken. Encana Corp.’s Duvernay team leader Brendan McCracken said the industry was running 21 rigs in the emerging Duvernay shale play, and 95 wells have been drilled to date. Early indications are that the Duvernay will mature into a world-class resource play. Talisman Energy vice president Mike Wood noted that his firm’s current position in the Montney includes access to 29 trillion cubic feet equivalent (Tcfe) of natural gas, including 5,700 potential well locations. “The name of the game in Canada is getting your costs down,” Wood told DUG Canada attendees. Gibson Scott, director of energy research for ITG Inc., dissected the Canadian and US Bakken plays. While many believe that “all Bakken is created equal, ” differences in geology play a strong role in creating two very different resource plays, he said. Conference attendees also heard from John Gibson, Jr., president and CEO of Tervita, and Ian Anderson, president of Kinder Morgan Canada, on themes of securing the social license to operate and steps to take to ensure strong community participation in Canada’s massive new resource projects. Many more distinguished speakers added rich content throughout the event. The take-away? Canada is in the early stages of a great new phase in its long history of resource development. Once focused on the North American markets, Canadian producers now see the world as their oyster. Peggy Williams Kevin Heffernan Editorial Director President Hart Energy Canadian Society of Unconventional Resources (CSUR)

Did you meet these industry leaders while at DUG Canada?

COO BC Oil and Gas Commission

President and CEO Blaze Energy Ltd.

President & COO Canadian Spirit Resources Inc.

VP Exploration & Development Devon Canada Corp.

CEO Diamond Gas Management

Canada Ltd.

President Dycor Technologies Ltd.

Vice President Encana Corp.

President GEODynamics

Executive Vice President Glencoe Resources Ltd.

President Hanna Oil & Gas Company - Canada

Vice President Hanna Oil & Gas Company -

Canada

Vice President Jefferies & Co., Inc.

President Kinder Morgan Canada

CFO Kanata Energy Group

President and CEO Kanata Energy Group

Vice President Kern Partners Ltd.

SVP Business Development Legado Resources

President Merrick International

Partner and Managing Director Morgan Stanley Private Equity

COO Mosaic Energy

Vice President Murphy Exploration &

Production Co.

Vice President Northern Blizzard Resources Inc.

VP Operations Petroleum Processors Inc.

President and CEO Progress Energy Canada Ltd.

VP Engineering & Operations Sabre Energy Ltd.

VP Exploration Sabre Energy Ltd.

SVP Sojitz Energy Venture Inc.

President and CEO Talisman Energy Inc.

VP Global Development Talisman Energy

President & CEO Tervita

CEO Unconventional Gas Resources

President Unconventional Gas Resources

President & CEO Zodiac Exploration Inc.

Did you listen to these informative speakers?

Fernando Aguilar COO

Calfrac Well Services

Ian Anderson President

Kinder Morgan Canada

Michael Culbert President and CEO

Progress Energy Canada Ltd.

Kevin Cumming President and CEO

Kanata Energy Group

Richard Dunn Vice President Encana Corp.

Andy Evans Senior VP & Director ARC Financial Corp.

Donna Garbutt President

Schlumberger Canada Ltd.

John Gibson Jr. President & CEO

Tervita

Honorable Ken Hughes Minister of Energy

Government of Alberta

Hal Kvisle President and CEO

Talisman Energy Inc.

Bradley Lock SVP, Liquids Business Unit

Keyera Corp.

Bill Marko Managing Director Jefferies & Co., Inc.

Brendan McCracken Team Lead, Duvernay

Encana Corp.

Shinya Miyazaki CEO

Diamond Gas Management Canada Ltd.

John Moon Partner and

Managing Director Morgan Stanley Private Equity

Victor Ojeda General Manager - LNG

Shell Canada Ltd.

Ken Paulson COO

BC Oil and Gas Commission

Gibson Scott Director, Energy Research ITG Investment Research

Peggy Williams Editorial Director

Hart Energy

Mike Wood VP, Montney Shale

Division Talisman Energy Inc.

DUG Canada Statistics: Attendees Exhibits and Sponsors

Total Attendees 624 ● Total Exhibitors 43 ● Total Sponsors 17

DUG Canada Statistics:

International Countries Represented - 8 Canada Ghana Italy Malaysia

Nigeria South Africa United Arab Emirates United States

Canadian Provinces Represented - 4

Alberta British Colombia Manitoba Quebec

United States Represented - 19 Arizona California Colorado Illinois

Kansas Louisiana Maine Maryland

Michigan New York Ohio Oklahoma

Pennsylvania Tennessee Texas Utah

Washington Wisconsin Wyoming

Save the Date – February 24 – 26, 2014

The Third DUG Canada Conference and Exhibition will explore the depth and breadth of Canada’s unconventional plays. Beyond their key geological and geophysical parameters additional conference agenda topics include: • Money and metrics • Environment and operating excellence • Completions and cost control • Export opportunities and options For 2014, we plan to provide an agenda that is as informative and pertinent as those we deliver for Hart’s DUG Series Conferences in the US. Make your plans to attend the conference in February 24 – 26, 2014 at the TELUS Convention Centre.

Attendees by Job Function:

Attendees by Company Type:

Admin./Other/ Communications/

4% Consulting

7%

Engineering Management/

R&D 12%

Engineering/ Technical/Field Ops.

22%

General/ Corporate

Management 30%

Purchasing/ Procurement/

IT 1%

Sales/Marketing 24%

Banking/ Finance/

Consulting 16%

Engineering/ Drilling /Geology

7%

Government/ Other

4%

Manufacturing 11%

Midstream: Terminal/Storage/

Processing 5%

Oil and Gas Operator

40% Service/Supply 17%

Companies Represented - 264

3esi Agar Canada Corp. Agora Financial

Alberta Energy, Government of Alberta

American Tradeshow Anadarko Petroleum Corp.

Anvil Corp. Apache Canada Ltd. Applied Cryo Technologies

ARC Financial Corp. ARC Resources Arcis Seismic Solutions

Argus Media Inc. Ariel Corp. ATB Corporate Financial Services

ATCO Energy Solutions Atlas Resin Proppants Baker Hughes Inc.

BASF Basin Supply BC Oil & Gas Commission

Bennett Jones, LLP Bentek Energy BG Group

Black Spruce Merchant Capital

Black Swan Energy Ltd. Blaze Energy Ltd.

Bloomberg Tradebook BMO Capital Markets BOS Solutions

BWFS Industries, LLC Cabra Consulting Ltd. Calfrac Well Services Ltd.

Calgary Herald Calmena Energy Services Canadian Discovery Ltd.

Canadian International Oil Corp.

Canadian Natural Resources Ltd. Canadian Society for

Unconventional Resources

Canadian Spirit Resources Inc.

Canawest Technologies Inc. Canbriam Energy

Cando Carbo Caterpillar Financial

CBC Calgary News Cenovus Energy Inc. CertainTeed Corp.

CESI Chemical CETCO Chevron

CN Railway ConocoPhillips Canada Consulate-General of Japan

Corpro Group Cortex Business Solutions D&I Railroad

D.A. Nolt Inc. Deloitte LLP Detechtion Technologies

Devon Canada Corp. DFI Co. Diamond Gas Management Canada

Dontech Ltd. Dragon Products Drillinginfo

Drive Rental Corp. Dycor Technologies Ltd. Earth Communications

Emkade Distribution Inc. Enbridge Encana Corp.

EnCap Flatrock Midstream Enerflex Energy Navigator Inc.

Energy Resources Conservation Board

Energy Spectrum Enerplus Corp.

Enersight Enviro Energy - CCST Singapore Pte. Ltd.

Envirosafety Technologies

ESG Solutions Exterran ExxonMobil

Ferus Inc. FlexSteel Pipeline Technologies Ltd. FMC Technologies

Forta Corp. Fortis Alberta Inc. Forum Energy Technologies

Franco-Nevada Corp. Gaffney, Cline & Associates Galaxy Broadband Communications

Gas Drive Global GE Power and Water GEO Dynamics

Geo Logic Systems Geoforce Glencoe Resources Ltd.

Golder Associates Government of Alberta Grantech International

Greenstar Building Systems GTR Gas Tech Canada Guggenheim Partners

Hammerhead Industrial Hose Hanna Oil & Gas Co., Canada Harvest Operations Corp.

HB Rentals LC Hess Corp. Horizon Power Systems

Hunt Oil Co.of Canada Inc. IFP Technologies (Canada) Inc. Imperial Oil Ltd.

Ingrain Inland Plastics Ltd. Innov-X Canada

Integrated Pipeline Projects Canada Ltd.

Integrated Production Services Interra Energy Services Ltd.

Intertape Polymer Group ION Geophysical ITG Investment Research

J.L. McNichol Consulting Inc. Jefferies & Co., Inc. JGC Energy Development (USA) Inc.

JuneWarren-Nickles Energy Group

Kanata Energy Group Kern Partners Ltd.

Keyera Corp. Kinder Morgan Canada Knowledge Reservoir

Laguna Tubular LDC Gas Forums Legado Resources

Loadcraft Industries Magnum Oil Tools Canada Ltd. Maine Pointe LLC

MAP Oil Tools MaxComm Communications Mazz Oilfield Servicers

McDaniel & Associates Consultants Ltd.

Merrick Morgan Stanley Private Equity

Mosaic Energy MRW Engineering Ltd. Murphy Exploration & Production

Murphy Oil Co. Ltd. Nalco Canada NAPE

NASi National Energy Board NCS Oilfield Services

NewsBase Nexans AmerCable Nexen Inc.

Nexeo Solutions NextEra Energy Resources Noble Energy

Noise Solutions Noresman North American Interpipe Inc.

Northern Blizzard Resources Inc.

NOVA Chemicals Nuco Exploration

NuVista Energy Ltd. Occidental Petroleum O'Hare Energy

Olympus NDT Canada Inc. Ontario Teachers' Pension Plan Oxy Corp.

Paco Equipment Pandell Technology Corp. Pembina Pipeline Corp.

Penn West Petroleum Ltd. PennWest Exploration Petroleum Listing Services

Petroleum Processors Inc. PetroSkills Plant Outfitters

Platts Precision Drilling Preferred Sands

Progress Energy Canada Ltd. Protek Systems PT Vartech Inti Cemerlang

Quorum Business Solutions Randall Gas Technologies Red Deer Ironworks Inc.

Rigdata Riveer Environmental Rockford Corp.

Sabre Energy Ltd. Safety Management Systems Safway Services Canada

SAIT Polytechnic Santrol/Fairmont Minerals Sasol Canada

Sasol Shared Services Saudi Aramco SCF Partners

Schlumberger Canada Ltd. Schramm Scotia Waterous

Seaweld Engineering SemCAMS Shaw

Shell Canada Ltd. Sidewinder Drilling Inc. Silver Lake Kraftwerk

Sinopec Daylight Energy Sintex Minerals and Services SM Energy Co.

Sojitz Energy Venture, Inc. Source Energy Services Southwestern Energy

Spartan Controls Ltd. Specialized Tech Inc. St. Brendan's Exploration Ltd.

Stabil Drill Stifel, Nicolaus & Company Inc. Stratley AG

Suncor Energy Inc. Talisman Energy Inc. TAQA North Ltd.

Target Logistics Tarpon Energy Services Ltd. TBM Sand & Storage Logistics LLC

TD Securities Tectonic Energy Consulting Tenaris

Tendeka Inc. Tervita Corp. Tetra Technologies Inc.

The Carlyle Group The Roughneck Magazine TMK IPSCO

Total Tracerco Trans Canada Pipeline

Transvision Shipping Tudor Pickering Holt & Co U.S. Consulate General Calgary

U.S. Silica Company Unconventional Gas Resources Unimin Corp.

UniversalPegasus International URS Corp. V&M USA Corp.

Vallourec & VAM Veresen Inc. Vermilion Energy

Wacker Neuson Watco Terminal and Port Services Weatherford

Weatherford Petroleum Consulting

Wells Fargo Energy Group Western Petroleum

Worley Parsons XTO Energy Zodiac Exploration Inc.

Photos from 2013:

Canadians gathered to hear the industry leaders’ predictions on

the future of unconventional drilling.

Exhibition Hall activities brought

executives and producers together.

Thank You to our Sponsors: